Company Number: SC668970

Analysis Date: 2025-07-20 15:27 UTC

1. Risk Rating: MEDIUM
   Justification: FINFREY CONSULTANTS LTD shows modest net assets (£941) and persistent current liabilities exceeding current assets, indicating potential liquidity constraints. However, the company remains active, compliant with filing deadlines, and maintains a small employee base, mitigating some operational risk.

2. Key Concerns:

• Liquidity Risk: Current liabilities (£47,904) exceed current assets (£34,085), resulting in negative net current assets (~-£13,819), a sustained pattern since 2022, suggesting potential difficulties in meeting short-term obligations.
• Diminishing Net Assets: Net assets have decreased significantly from £3,400 in 2023 to £941 in 2024, signaling erosion of equity and possible financial stress.
• Concentration of Control: Ownership and voting rights are heavily concentrated with two individuals (Mr John Clift controlling 75-100%), which could present governance or succession risks.

3. Positive Indicators:

• Compliance: The company is up to date with statutory filings, including accounts and confirmation statements, reducing regulatory risk.
• Consistent Operations: Maintains a small but stable workforce (average 2 employees), indicating ongoing business activity and operational continuity.
• Micro-entity Status: As a micro-entity, reporting requirements are simplified, but the company appears to manage compliance adequately.

4. Due Diligence Notes:

• Verify the nature and timing of current liabilities to assess if there are any overdue or contingent liabilities that could exacerbate liquidity risk.
• Review detailed cash flow information (not available here) to understand operational cash generation or reliance on external funding.
• Investigate reasons behind the decline in net assets, including any losses or write-downs during the year.
• Assess the impact of director changes, especially the resignation of a director in March 2024, on governance and strategic direction.
• Confirm whether there are any related party transactions given the significant shareholding overlap with directors.